Page 283 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Mangement

Notes Work-Out, a series of town hall meetings conducted by GE management and designed to
encourage employee feedback, cross-pollination of ideas, and employee empowerment
"In the Welch-led GE culture, traditional barriers dividing employees, coworkers,
and management give way to tethers of interdisciplinary and interdepartmental
cooperation".
Reassessing Performance and Benchmarking Employees Continuously

Jack Welch does a good job of illustrating the need for proactive change management and
constant reassessment when he says, "If the rate of change inside an organisation is less
than the rate of change outside... their end is in sight". One of the tools used by Welch to
ensure constant reassessment and benchmarking is the annual review undertaken by every
GE executive and staff member. Once a year, every employee's performance evaluated
and awarded a numerical ranking of between 1 and 5. "The implicit understanding is that
both the individual and his or her score are moving up or it's time to leave the company".
Building Effective Top Management Team: GE's Ways
1. Selecting superior managers, dedicated to eliminating bureaucracy and building
businesses, to run GE's operating units in entrepreneurial fashion.
2. Creating a transparent financial reporting structure that enables CEO to monitor
the manager's individual performance by the numbers. Under the CEO's watch,
managers have wide latitude in building their GE units, as long as the numbers
demonstrate the wisdom of their ways.

Redefining Relationships between Management and Employees
The Four Key Goals of GE's Work-Out Meetings:
1. Encourage employees to share their views in a collaborative culture.
2. Vest greater responsibility, power, and accountability with front-line employees.

3. Eliminate wasteful, irrational, and repetitive steps in the work process (which would
come to light through employee feedback).
4. Dismantle the boundaries that prevent the cross-pollination of ideas and efforts.

Leading Change through the GE's Organization: the Jack Welch's Way
1. Redesigning the role of the leader in the new economy: creating followers through
communicating a vision, and establishing open, caring relations with every
employee.
2. Creating an open, collaborative workplace where everyone's opinion is welcomed.
3. Empowering senior executives to run far-flung businesses in entrepreneurial fashion.

4. Liberating the workforce; making everybody a participant through improving
vertical communication and employee empowerment.
Question

List out the important lessons, which you as HR Manager can emulate from the case study.

16.4 Summary

 International human resource management (IHRM) is about the worldwide management
of human resources. The purpose of international human resources management is to

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